Does The Purchase Via A TGF Limit The Debt Ratio?

Composed of at least two natural or legal persons, the TG Finance (TGF) allows several rental investments , while securing the property and ensuring that the land rights of each protagonist are well respected. However, if the TGF can borrow, the bank studies the repayment capacity of all partners, to the extent that each is responsible for its debts. In fact, this does not limit the debt ratio . This form of detention is completely neutral, transparent with regard to indebtedness.

 

Does TGF have an advantage for getting a loan?

Does TGF have an advantage for getting a loan?

At present, banks do not offer any specific financing for a TGF : subject to loan formulas, it does not benefit from a specific rate – neither in favor nor against.

In addition, reserved only for the purchase of a principal residence, aid solutions are excluded. The institutions therefore carefully study the debt capacity of each partner, to ensure the solvency of each; then, formulate their loan proposals, at fixed or variable rates, while taking into account the rents that will be collected by the TGF.

To borrow in this legal form, there are two solutions:

  • On an individual basis, via a deferred capital ICS, each shareholder borrows the sum of his own participation , supplying the company with his personal contribution in several installments.
  • Via an TGF, which assumes that the rental income expected must be sufficient to honor the monthly payments . Note that the bank is only based on 70% of their amounts, to cover the risks of non-payment of rents.

 

Are the guarantees for obtaining a loan in TGF different?

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As part of a real estate loan in TGF, the bank can ask for the following guarantees:

  • A mortgage on the acquired property , offering the lender the possibility of selling it, in case of default of the borrower
  • The guarantee of a specialized company such as VCP Credit, assuring the bank’s claim, if any.

But banks can also claim a specific guarantee to the TGF: a joint guarantee for each partner of the TGF, even each of them is already responsible and solidary in front of the debts of the latter. TGF is not a limited liability company.

Like other home loans, they traditionally require the purchase of a death and disability insurance . On the other hand, loss of employment insurance is not essential, even if it is not necessarily excluded from the bargaining table.

In any case, know that the TGF also benefits from the compulsory legal protection – that it is at the level of the condition precedent of obtaining the loan or at the level the 10-day cooling-off period of acceptance of the offer.

 

With borrowing conditions similar to a live purchase, why buy in TGF?

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The Civil Society Real Estate was born with the Civil Code, just 200 years ago, in March 1804. Today, it is based on a text of January 4, 1978. However, some attribute magical powers to him: in particular, that of ‘evade taxes or circumvent debt.

Concretely, if it is not, it is nonetheless an excellent alternative to indivision with many advantages, even if the TGF does not allow you to suppress your tax or reduce your debt.

Good reasons to choose TGF

  • Buy two without being married
  • Manage alone with full powers
  • Lock the capital and avoid any intrusion
  • Keep a family property between generations
  • Take out real estate from professional assets
  • Make a big investment to several
  • Sell ​​a property to your children
  • Renovate and transmit a building to his heirs
  • Give shares rather than indivisible rights

Brakes at TGF

  • To be owner while maintaining the anonymity
  • Buy as a couple with very young children
  • Escaping creditors
  • Deduct taxes on the expenses of his principal residence
  • Sell ​​a property to oneself

To benefit from wise advice and built on the basis of your personal situation and obtain, if necessary, the best conditions of borrowing and, do not hesitate to call a free broker!